Information  X 
Enter a valid email address

Fraport AG (FRG)

  Print      Mail a friend

Monday 03 March, 2008

Fraport AG

Fraport Fiscal Year 2007: Record Figures Despit...





FRANKFURT, Germany, March 3 /PRNewswire/ --

- Preliminary Figures - Subject to Supervisory Board Approval

- Revenue and EBITDA Continue to Grow - Optimistic Outlook for 2008

    In fiscal year 2007, the Fraport Group achieved new air traffic records 
and further increases in revenue and operating results. With EUR2.33 billion, 
revenue was 8.6 percent higher than in the previous year, while EBITDA 
(earnings before interest, tax, depreciation and amortization) rose by 0.4 
percent over 2006 to reach EUR580.5 million. Net profit of EUR213.7 million 
was 6.6 percent lower due to special effects in 2006. Fraport's executive 
board is recommending an unchanged dividend of EUR1.15 per share.



    At the Group's Frankfurt Airport (FRA) home base, Fraport
again achieved a new record in passenger traffic for the 2007 fiscal year.
Welcoming more than 54 million passengers, FRA registered an increase of 2.6
percent. Airfreight tonnage at FRA climbed by 1.9 percent to 2.1 million
metric tons. Combined, the Fraport Group's majority-owned airports recorded a
total of 75.6 million passengers, representing 5.5 percent year-on-year
growth.



    This again demonstrates the curbing effect of capacity
constraints at Frankfurt Airport. Fraport executive board chairman Dr.
Wilhelm Bender, speaking at the company's annual financial conference today
in Frankfurt, said that he was, thus, all the more pleased about last
December's zoning approval for the expansion of Frankfurt Airport. "This
marks a milestone for timely implementation of our airport expansion plans."
Bender emphasized that expansion and the urgently needed capacity increases
will secure FRA's future competitiveness in the long term. Thus, the go-ahead
for FRA's expansion "will also benefit the entire Frankfurt/Rhine-Main
region, the prosperity of which has always been closely tied to an efficient
transportation infrastructure," he explained.



    Bender again underscored that Fraport wants to wait for legal
clarification from the Hesse Administrative High Court's various fast-track
proceedings - although the zoning approval already provides the legal basis
for the immediate start of construction. "Because of our respect for the
court and our commitment to handle the expansion issue constructively and in
the spirit of partnership and good neighborliness, we will not proceed with
irreversible measures," Bender stated. "However, when the legal status has
been clarified, which will presumably be no later than the beginning of 2009,
we will waste no time in starting the extensive expansion program."



    Until the opening of the new runway for the 2011 winter
timetable, FRA plans to compete successfully against its global hub
competitors by maximizing four strategies for an even more efficient use of
existing infrastructure. Firstly, the trend toward increasing capacity
utilization of passenger aircraft at FRA must continue. Secondly, the use of
widebody aircraft will continue to increase. Thirdly, intermodality - the
integration of air and rail transportation which Frankfurt Airport has
promoted for many years - will be further intensified. Last but not least,
the company expects the attractiveness of FRA's late evening and early
morning takeoff and landing slots to increase further, thus activating
capacity reserves available in the existing system. "We are proud of our
market position that is the envy of others," said Bender. Approximately 70
percent of all intercontinental flights to and from Germany are operated via
Frankfurt. Growing continuously, the share of widebody aircraft at FRA is
currently at 25 percent; in comparison, Munich Airport's share is less than
six percent, stressed Bender.



    In addition to developing our Frankfurt home base into an
airport city, Fraport also successfully taps new market opportunities as part
of its external business, said Bender. Existing airport holdings and
investments achieved satisfying development in the past year. "We continue to
be constantly on the lookout for attractive new opportunities worldwide,
where we can profitably market our expertise in airport operations,"
explained the executive board chairman.



    "We maintain intensive contact with the market, particularly
in the booming countries of India and China". These markets are receptive to
further attractive participation from Fraport, in addition to the company's
existing airport investments in the Indian capital of Delhi and the mega-city
of Xi'an in central China. Promising negotiations on further investments in
China are in progress.



    Fraport's executive board chairman is optimistic about the
current 2008 fiscal year. In terms of operations, the first two months of the
year have been very positive. Passenger traffic at FRA surged by 3.7 percent
compared to the busy January of 2007. And the uptrend also continued in
February, when FRA welcomed well over four percent more passengers
year-on-year. In contrast, aircraft movements remained unchanged. From this,
we can ascertain just how much growth would be possible if FRA had sufficient
capacities available to meet the demand.



    Growth plans for the Fraport Group's other airports are
clearly more ambitious, states Bender. Together, these airports are expected
to share in the excellent growth perspectives of world aviation, at least
proportionately.



    At Frankfurt, passenger traffic is anticipated to rise by one
or two percent in the current year.



    Bender announced that Group revenue will decline in absolute
terms in 2008, due to the recent sale of ICTS Europe. Excluding this one-time
effect, earnings will rise again because of increasing passenger figures.
"Therefore, we should be able to close the current business year with a
further rise in EBITDA," said Fraport's CEO.



    "We are successful because we are market-oriented and
competitive," said Bender, in view of the current wage rate disputes in
Germany. "These success factors have been and must continue to be vital,
particularly concerning staff costs - our biggest cost element." Bender
understands that employees wish to share adequately in the success of their
work. For many years, therefore, Fraport has run a profit-sharing plan for
its employees. "A new collective agreement and possible industrial actions
must not jeopardize what we have achieved at our company to the benefit of
all employees," he urged.



    All figures stated for the 2007 fiscal year are preliminary
until March 18, the day when Fraport AG's supervisory board will approve of
the 2007 Statement of Accounts. Effective March 20, Fraport's Annual Report
2007 will be available as a download via Fraport's Internet Web site. Fraport
AG's Annual General Meeting (AGM) will be held on May 28 at the
Jahrhunderthalle in Frankfurt-Höchst.



    
    For More Information, Please Contact:
    Fraport AG Frankfurt Airport Services Worldwide
    Robert A. Payne, B.A.A. - Manager International Press
    Press Office (Dept. UKM-PS), Corporate Communications (UKM)
    60547 Frankfurt am Main, Federal Republic of Germany
    Tel.: +49-69-690-78547; Fax: +49-69-690-60548;
    E-mail: [email protected]; Internet: http://www.fraport.com


                                                                

a d v e r t i s e m e n t